FX.co ★ Trading plan for 27/09/2017

Trading plan for 27/09/2017:

The US Dollar is under supply pressure since the mornin. The strongest rivals against USD is AUD (+0.3%), GBP (+0.23%), and CHF (+0.23%). Slightly above the line are precious metals and Crude Oil. Gold ounce (+0.05%) costs $1,295, while the WTI settled up at $52.20 (+0.7%). The indecisiveness of the global stock market has reached Asia, where indices clearly cannot decide which direction to follow. Hang Seng is up 0.4%, Shanghai Composite is + 0.1% up, Nikkei 225 is -0.3% down.

On Wednesday 27th of September, the event calendar is quite busy with important news releases, especially during the late NY session when the US will post Durable Goods Orders, New Home Sales, and Crude Oil Inventories. Moreover, there is a scheduled speech from BOC Governor Stephen Poloz and FOMC Member Lael Brainard. Later on, the Reserve Bank of New Zealand will present the Official Cash Rate.

EUR/USD analysis for 27/09/2017:

The Durable Goods Orders are scheduled for release at 12:30 pm GMT and market participants expect a good increase to 1.0% in the reported month from -6.8% last month. The Durable Goods Orders data are the value of orders placed for relatively long-lasting goods. Durable Goods are expected to last more than three years. Such products often require large investments and usually reflect optimism on the part of the buyer that their expenditure will be worthwhile. If the data meet market participants expectations for a 1.0% increase, then this figure will be the biggest advance in Durable Goods Orders since November 2016. In this situation, the US Dollar might find some bid and get appreciated across the board.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The market has hit the technical support at the level of 1.1775 but the bulls were too weak to bounce significantly and the price has tanked again. The next technical support is seen at the level of 1.1721. Please notice the market conditions are now getting more oversold.

Market Snapshot: USD/JPY at new highs

The price of USD/JPY has made a new marginal high at the level of 112.80, just below the 78% Fibo at the level of 112.91. Nevertheless, there is a clear divergence between the price and the momentum indicator, so the rally up might not last long. The nearest support is seen at the level of 111.55.

Market Snapshot: Gold fake breakout gets reversed

The price of Gold had broken out of the golden channel, but it turned out the breakout was fake and the price was capped around the level of $1,313 and then reversed back to the channel zone. Currently, the price is again testing the technical support at the level of $1,287. In case of a breakout lower, the next support is seen at the level of $1,276.